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Schedule II - Parent Corporation Finanical Statements
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II- Parent Corporation Financial Statements
SCHEDULE II
 
SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Balance Sheets

 
 
December 31,
($ in thousands, except share amounts)
 
2017
 
2016
Assets:
 
 

 
 

Fixed income securities, available-for-sale – at fair value (amortized cost: $89,799 – 2017; $73,471 – 2016)
 
$
89,872

 
73,509

Short-term investments
 
24,080

 
17,777

Cash
 
534

 
458

Investment in subsidiaries
 
2,013,304

 
1,845,410

Current federal income tax
 
22,266

 
19,766

Deferred federal income tax
 
13,239

 
19,562

Other assets
 
871

 
840

   Total assets
 
$
2,164,166

 
1,977,322

  
 
 

 
 

Liabilities:
 
 

 
 

Long-term debt
 
$
329,116

 
328,667

Intercompany notes payable
 
78,443

 
79,324

Accrued long-term stock compensation
 
37,017

 
32,029

Other liabilities
 
6,633

 
5,932

   Total liabilities
 
$
451,209

 
445,952

 
 
 
 
 
Stockholders’ Equity:
 
 

 
 

Preferred stock at $0 par value per share:
 
 

 
 

   Authorized shares 5,000,000; no shares issued or outstanding
 
$
—

 
—

Common stock of $2 par value per share:
 
 

 
 

Authorized shares:  360,000,000
 
 
 
 
Issued: 102,284,564 – 2017; 101,620,436 – 2016
 
204,569

 
203,241

Additional paid-in capital
 
367,717

 
347,295

Retained earnings
 
1,698,613

 
1,568,881

Accumulated other comprehensive income (loss)
 
20,170

 
(15,950
)
Treasury stock – at cost (shares: 43,789,442 – 2017; 43,653,237 – 2016)
 
(578,112
)
 
(572,097
)
   Total stockholders’ equity
 
1,712,957

 
1,531,370

   Total liabilities and stockholders’ equity
 
$
2,164,166

 
1,977,322

 
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.

SCHEDULE II (continued)
 
SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Statements of Income
 
 
 
Year ended December 31,
($ in thousands)
 
2017
 
2016
 
2015
Revenues:
 
 

 
 

 
 

Dividends from subsidiaries
 
$
80,096

 
61,014

 
57,752

Net investment income earned
 
2,044

 
1,259

 
852

Net realized losses
 
(15
)
 
(220
)
 
—

   Total revenues
 
82,125

 
62,053

 
58,604

 
 
 
 
 
 
 
Expenses:
 
 

 
 

 
 

Interest expense
 
24,721

 
24,030

 
24,057

Other expenses
 
36,251

 
35,020

 
28,393

   Total expenses
 
60,972

 
59,050

 
52,450

 
 
 
 
 
 
 
   Income before federal income tax
 
21,153

 
3,003

 
6,154

 
 
 
 
 
 
 
Federal income tax (benefit) expense:
 
 

 
 

 
 

Current
 
(22,187
)
 
(17,924
)
 
(16,609
)
Deferred
 
6,311

 
(2,143
)
 
(1,603
)
   Total federal income tax benefit
 
(15,876
)
 
(20,067
)
 
(18,212
)
 
 
 
 
 
 
 
Net income before equity in undistributed income of subsidiaries
 
37,029

 
23,070

 
24,366

 
 
 
 
 
 
 
Equity in undistributed income of subsidiaries, net of tax
 
131,797

 
135,425

 
141,495

 
 
 
 
 
 
 
Net income
 
$
168,826

 
158,495

 
165,861

 
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.

 
SCHEDULE II (continued)

SELECTIVE INSURANCE GROUP, INC.
(Parent Corporation)
Statements of Cash Flows
 
 
Year ended December 31,
($ in thousands)
 
2017
 
2016
 
2015
Operating Activities:
 
 

 
 

 
 

Net income
 
$
168,826

 
158,495

 
165,861

 
 
 
 
 
 
 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

 
 

Equity in undistributed income of subsidiaries, net of tax
 
(131,797
)
 
(135,425
)
 
(141,495
)
Stock-based compensation expense
 
12,089

 
10,449

 
8,973

Net realized losses
 
15

 
220

 
—

Amortization – other
 
678

 
648

 
740

 
 
 
 
 
 
 
Changes in assets and liabilities:
 
 

 
 

 
 

Increase in accrued long-term stock compensation
 
4,988

 
5,564

 
4,575

Decrease (increase) in net federal income taxes
 
3,811

 
(3,612
)
 
(3,052
)
Decrease in other assets
 
(60
)
 
(202
)
 
(12
)
Increase (decrease) in other liabilities
 
714

 
80

 
(202
)
Net cash provided by operating activities
 
59,264

 
36,217

 
35,388

 
 
 
 
 
 
 
Investing Activities:
 
 

 
 

 
 

Purchase of fixed income securities, available-for-sale
 
(58,832
)
 
(45,789
)
 
(33,717
)
Redemption and maturities of fixed income securities, available-for-sale
 
10,465

 
14,983

 
21,578

Sale of fixed income securities, available-for-sale
 
31,819

 
18,768

 
—

Purchase of short-term investments
 
(185,590
)
 
(119,501
)
 
(106,933
)
Sale of short-term investments
 
179,292

 
130,841

 
94,422

Net cash used in investing activities
 
(22,846
)
 
(698
)
 
(24,650
)
 
 
 
 
 
 
 
Financing Activities:
 
 

 
 

 
 

Dividends to stockholders
 
(37,045
)
 
(33,758
)
 
(31,052
)
Acquisition of treasury stock
 
(6,015
)
 
(4,992
)
 
(4,182
)
Net proceeds from stock purchase and compensation plans
 
7,599

 
7,811

 
10,089

Excess tax benefits from share-based payment arrangements
 
—

 
1,819

 
1,736

Principal payment on borrowings from subsidiaries
 
(881
)
 
(6,839
)
 
(2,798
)
Net cash used in financing activities
 
(36,342
)
 
(35,959
)
 
(26,207
)
 
 
 
 
 
 
 
Net increase (decrease) in cash
 
76

 
(440
)
 
(15,469
)
Cash, beginning of year
 
458

 
898

 
16,367

Cash, end of year
 
$
534

 
458

 
898


See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K.